Return Disposal Costs
The costs associated with disposing or recycling products that have been returned due to customer rejects, end of life or obsolescence can be significant. In some cases, the costs may even exceed the original purchase price of the product. Return disposal costs can include:
- transportation costs,
- labor costs,
- disposal fees.
Return disposal costs can have a major impact on a company’s bottom line. Therefore, it is important for companies to carefully consider all options before deciding how to dispose of returned products. In some cases, it may be more cost-effective to recycle the products rather than dispose of them.
Return disposal costs can also vary depending on the method of disposal. For example, transportation costs will be higher if the products are shipped back to the manufacturer rather than being disposed of locally.
Overall, return disposal costs can be a significant expense for companies. Therefore, it is important to carefully consider all options before deciding on the best way to dispose of returned products.
Related Links
Benefits of an Efficient Reverse Logistics Process – ArcBest
Turn your reverse supply chain into a profit center – Strategy – CSCMP’s Supply Chain Quarterly